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Old 08-25-2011, 06:49 PM   #138
elcreative
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Quote:
Originally Posted by Elfwreck View Post
In physical retail, a freebie is an item that won't be sold. In digital retail, an "item" can be sold or given away an infinite number of times without diminishing stock.

A physical freebie has lost production costs; a digital freebie doesn't. A physical freebie can be called a "lost sale," because that *specific copy* could've sold to someone else, who'd cover the production costs + profit. But a digital item doesn't work that way; giving one away (or a hundred) doesn't increase the production costs that the sales have to cover. Physical freebies can be lost sales because you can run out of them before you run out of potential sales; you don't run out of digital copies before you run out of buyers.
I didn't say it had the same costings as a physical item... but digital or physical - give it away = no money from the acquisition of the item... digital doesn't increase production costs but free also doesn't help defray costs and the acquirer isn't going to buy one as they've got a freebie... at some future time they may well buy a different item but this doesn't alter a simple fact - give someone a freebie and they are not going to buy another one, why would they, they've got a free one...

As a separate point, "a solid retail background" doesn't only mean selling solid, physical objects so why assume that... retail is being in a business selling things, be they physical or digital...

Last edited by elcreative; 08-25-2011 at 06:55 PM.
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